CONCEPT=REVENUE

DONE BY :P. AAYUSH

KUMAR
CLASS:11D
 Revenue

✣ Revenue is the amount of money that a company

actually receives during a specific period,
including discounts and deductions for returned
merchandise. It is the "top line" or "gross
income" figure from which costs are subtracted
to determine net income. It consists of following
three types.
 Concept of Revenue

✣ Total Revenue => Total Revenue refers to total

receipts from the sale of a given quantity of a
commodity. It is the total income of a firm. Total
revenue is obtained by multiplying the quantity of the
commodity sold with the price of the commodity.
Total Revenue = Quantity × Price
✣ Average Revenue => Average revenue refers to the
revenue obtained by the seller by selling the per unit
commodity. It is obtained by dividing the total
revenue by total output. Average Revenue = Total
Revenue/Quantity AR refers to the rate at which
output is sold. Accordingly AR is nothing but price of
the product.
 Marginal Revenue

✣ => Marginal revenue is the net revenue obtained

by selling an additional unit of the commodity. It
is the addition made to the total revenue by
selling one more unit of the good. In algebraic
terms, marginal revenue is the net addition to the
total revenue by selling n units of a commodity
instead of n – 1. MR=Change in Total Revenue/
TR Change in Quantity Sold= TR/TQ
THANK YOU